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DB Corp Q2 FY2019 revenue up 2.8%; forex loss pushes down net profit

DB Corp Limited (DBCL), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Divya Marathi and Saurashtra Samachar, has reported a 2.8 per cent growth in its total revenue to Rs 5,875 million, from Rs 5,713 million in the corresponding period last fiscal. On an adjusted basis, total revenue grew by 12.8 per cent YOY to Rs 5,875 million from Rs 5,207 million, after adjusting for last fiscal one off items as well festival season billing. 

EBIDTA stands at Rs 977 million (margin of 17 per cent), against EBIDTA of Rs 1,456 million in Q2 FY18 after considering forex loss of Rs 58.4 million and circulation expansion strategy related non-recurring expenditure of Rs 110 million. 

Circulation revenue has increased 5.6 per cent YoY to Rs 1,318 million from Rs 1,248 million, primarily due to volume driven growth. 

Profit after tax (PAT) stands at Rs 462 million (PAT margin 8 per cent), against Rs 787 million (PAT margin 14 per cent) in Q2 of last year, considering forex loss of Rs 62 million and circulation expansion strategy related non-recurring expenditure of Rs 110 million. 

Radio business 

Advertising revenues expanded by 8.4 per cent YOY to Rs 377 million in Q2 FY2019, against Rs 348 million in Q2 of last fiscal. On adjusted basis, Radio delivered growth of 18 per cent after adjusting for last fiscal’s festival season billing. 

Radio business EBIDTA grew by 30 per cent YOY to Rs 120 million from Rs 92 million. Radio business PAT grew by 47 per cent YOY to Rs 58 million from Rs 40 million last year. 

Digital business revenue grew by 5 per cent YOY to Rs 119 million from Rs 114 million. 

Commenting on the performance for Q2 FY 2018-19, Sudhir Agarwal, Managing Director, DB Corp Ltd, said, “Our circulation strategy implemented in recent times continues to deliver results that are also driven by the parallel execution of several growth-led initiatives undertaken across all our pillar divisions. The results of our efforts are visible through Dainik Bhaskar’s progress in Bihar where in a short span of time, we have been able to build a second leadership position through strong on-ground execution. Dainik Bhaskar is also now the largest circulated paper in Rajasthan. The same operating philosophy is being aggressively implemented across all regions of our presence, where our focus continues to remain on sharpening our organisational strengths, leading market expansion and driving excellence, enabling us to strive harder in a rapidly evolving and competitive media environment.” 

He further added, “As we progress, we expect the consumption and demand cycle to stabilise. Crude volatility and currency led inflation seem to loom going ahead, but we will continue to manage our business dynamically while driving operational efficiencies. As our strategic campaigns play out well, we look excitedly towards the second half of fiscal 2019, as we expand the frontiers of our vision, drive key areas of the business, act swiftly and efficiently on available opportunities, and address our customers’ needs with our full range of capabilities.”

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